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CFD Trading Articles CFD Trading Platforms and Softwares Choosing a CFD Trading Platform and Software | Choosing a CFD Trading Platform and Software |
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What is a CFD trading platform or software? A CFD trading platform allows clients to benefit from the advantages of CFD by giving direct market access to the global stock markets. Usually, some CFD brokers or providers use the same CFD platform as another provider. This is because they are relabeled as white label platforms. So if you are familiar with one of these, you will be able to understand the other as well. However, other CFD trading platforms may look and work in a completely different manner. What features to looks out for in a platform
Research and data You should check whether place limits or stop orders are allowed by the trading platform to go in a CFD position in the evenings. The order has to be placed in the evening to enter a CFD position next morning. This is especially beneficial for all those who work during the day time and trade in the evening. Limit orders are used to enter these orders into a CFD. Some brokers allow stop entry orders too. It is important to check that the limit orders are placed on either side of the market.
Order type Some CFD brokers’ CFD trading platform allow you to place order during a closed market time, so when the market opens you can enter a position at the opening price. This can be done when the market is closed with a market order. Some platforms term this as enter at open. Some providers will allow a person to enter a CFD only when the market is open. In such cases, the market has to be monitored while it is open. The time, however, depends on the location of the market. The market hours can be during the afternoon or night instead of thee morning if you are trading overseas.
Stop loss Trading systems use stop loss orders for entering a trade that is termed as stop entry orders. The traders are allowed to execute their trades in the evening in some trading systems. This is really suited for people who need to work during the day time. You might want to see if the platform is restricted for trading only during market hour. One of the greatest advantages of CFD trading is that it allows you to place stop loss orders that work automatically. Check out the details of order placement for stop losses when you choose a CFD broker. The stop loss order type will be determined by the trading system that you are using. Web based or computer based? Web based trading platforms are great for traders on the move. This is because, with them you just have to visit the website of the provider, and enter a user name and password. And this way, your trading platform can be accessed from anywhere in the world. However, there is a drawback here. The levels of security are low and this platform is much simpler than the software or computer based ones. Software Based trading platforms have to be downloaded on the computer that is meant to be used for the trading purpose. This kind of a trading platform offers extensive technical analyses nd charting packages. The services provided are more detailed and advanced. Ease of use Whatever trading platform you choose, whether it is web based or software based, the most important thing is how easy it is to use. You should be comfortable with the platform; otherwise it won’t solve your problem. Choosing the right platform is as important as selecting an efficient and reliable broker. Before actually starting your career as a trader, you could try practicing on placing orders through the demo accounts of different providers. This will also help in understanding your own proficiency with the trading platform, and then you can make a choice accordingly. Fees and costs The fees and cost of trading platforms range from provider to provider. Don’t always settle for the cheapest offer. Some providers may charge extra for general advice and customer care, which can be worth the extra cash spend. You should be aware of any hidden costs. This could include additional fees for transferring of funds and fees, and extra charges for deal executions over the phone. Though these costs are fair, still you need to know about them before entering into an agreement. Other trading softwares - Description of Metastock, tradestation, wealthlab Metastock This is a handy backtesting software for CFD traders. Metastock is not a cheap software but they produce a good output in terms of reporting. It is a charting package and a program where a trade database is generated and the trading system is coded. The program is quite easy to code. Metastock has the ability to custom indicators and plot standard onto your charts. This trading platform can generate a database of trades that are level zero trades as well as non level zero trades. This enables you to be in multiple positions at the same time. It is fast in its database generation. TradeStation The TradeStation trading platform can help in automating trading according to your own custom buy and sell rules. Before you risk your money in the market, you can backtest and optimize your strategies with Trade Station. It can create unlimited trading strategies. all of this is possible due to a particular technology used by TradeStation, known as Easy Language. This helps you in describing ideas using simple terms and statements, so basically you can use layman’s terms. TradeStation is quite a popular trading platform which is used by readers worldwide because it delivers discipline, speed and power. WealthLab This is a complete platform that allows you to develop and backtest stock and future trading strategies with the use of technical analysis. Charting Some CFD traders prefer the use of charting on the platforms that the providers come up with in order to modify their own entries. Charting is more useful for day trading. It is important to have an effective chart for assistance in order to have a clear idea about the market. |
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| Last Updated ( Thursday, 14 January 2010 ) |